There are some additional changes not mentioned in the release notes too, such as improved book shelves.

Kobo also says that moving forward they are going to be distributing firmware update packages to devices based on specific criteria, making the updated incompatible with certain devices, so they don’t support sideloading updates—it probably has something to do with the fact Kobo sells their ereaders in different countries.

To download the update just hit the sync button on your Kobo Touch or you can use the Kobo Desktop Software. Kobo is doing a staggered release of the update so it may be a few days before it’s available.

This new update is a MAJOR step forward!
Now you can select the dictionaries you need, and download new dictionaries – for instance there’s a Spanish-Spanish dictionary which is much more complete than the old english-spanish dictionary.

Besides now in order to look up a word in the dictionary it’s enough to touch the word for a moment, then the definition pops up directly.

I am surprised and very disappointed that my kobo touch does not have a Chinese dictionary installed. Also it seems to me that,when I tried to install my Chinese, French and other dictionaries onto the device, they will not work. So to my friends, I have to recommend kindle.